(HedgeCo.Net) While liquid alternatives are becoming more accessible, institutional investors still lead the way in allocations — but the gap is narrowing. For example, in the first half of 2025 more than 49.5 % of net inflows to liquid alternatives were from institutional share-classes — only slightly below the 51.7% at the end of 2024. lupusalpha.com+1
Geographically, there are signs of incremental change. In Germany, the Bundesverband Alternative Investments (BAI) survey found that just over 20% of institutional investors allocated to hedge funds and liquid alternatives in 2024, an uptick from prior years — suggesting a slow but steady return to the space. IPE
On the retail & advisor side, commentary from firms like BlackRock shows that flows into their Global Liquid Alternatives Fund from Australian clients increased by over 160% in 2025, illustrating rising interest outside of large institutions. BlackRock
The practical takeaway: While large institutions continue to lead allocations — thanks to scale, infrastructure and track-record — the increasing availability of accessible liquid alts (via funds/ETFs) is enabling retail and advisory channels to participate more meaningfully. This could broaden the demand base for liquid alts and drive further product innovation.